2010 Tax Tips for Your Job Search
As if being out of work and competing with everyone for work weren’t bad enough, an increased number of Americans are discovering yet another unpleasant truth about job hunting: It can be expensive. It costs money to travel to interviews, to get help with resumes, and to look good for those potential new bosses you’re trying to impress. Fortunately the IRS allows you to take tax deductions for at least some of those expenses if you itemize on your return.
Job-hunting expenses are grouped in the “miscellaneous deductions” of your tax return, a category which must exceed 2 percent of your adjusted gross income to qualify for the write off. But be aware, these types of deductions are called “preference items” and are added back when it comes to computing the dreaded alternative minimum tax. Here are some of the key job-hunting expenses you can and cannot deduct. If you have been unemployed during the last year, you’ll need to report your unemployment compensation as income. However, for 2010, the taxable portion is reduced by $2,400. Also, severance pay, bonuses, 401K and/or other pension distributions may be taxable.
What You Can’t Deduct
You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. You cannot deduct these expenses if:
- You are looking for a job in a new occupation
- There is over a year break between the ending of your last job and you are looking for a new one
- You are looking for a job for the first time
Home Office Equipment
• Cannot deduct: The full cost of equipment such as computers, printers, and fax machines
• Can deduct: A portion of the cost of equipment
Since most office equipment can be used for many purposes, you’ll only be able to deduct the percentage of the cost that corresponds to how much of the device you use exclusively for your job search. The good news is that under current law, even though the IRS considers equipment like computers and printers to have a five year life, an exception permits you to deduct up to $250,000 of equipment purchases in the year of purchase.
Education
• Cannot deduct: Classes and materials if you’re training for a new career
• Can deduct: Classes and materials associated with your present career
The IRS generally has strict limits on the deductibility of educational expenses. If you were laid off as a chef and you are going back to school to become an investment counselor, you cannot write those classes off. However, if you were laid off as a chef and you take a cooking class, or you were laid off as an investment counselor and you take a business course, it’s considered career development and is deductible. You can also deduct amounts you spend for typing, printing, and mailing copies of a resume to prospective employers if you are looking for a new job in your present occupation.
Travel
• Cannot deduct: Your flight and hotel stay in Vegas to search for a vacation house.
• Can deduct: Your flight and hotel stay in Vegas if you have an interview scheduled or are going to a documented business seminar.
If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. You can deduct the travel expenses if the trip is primarily to look for a new job. Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. Local and long-distance phone calls are also tax deductable.
Coaches and Assistants
• Cannot deduct: The fees for career coaches, resume specialists, web site designers, etc., if you are trying to break into a new field
• Can deduct: The fees for the above if you are applying for a job in the same field as your previous job
As with classes and education, if you’re using the services of a coach or specialist to assist your job hunting in the same field, it’s considered deductible career development. Note that the fees for any help related to your appearance — such as hair stylists, tailors, personal trainers, and dieticians are never deductible — since they don’t exclusively benefit your business or ability to do work.
Gifts
• Cannot deduct: A $200 gift basket to thank a potential client for their time.
• Can deduct: A $25 gift basket to thank a potential client for their time.
The IRS caps business gift deductions at $25.
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Resources:
Certified Public Accountant from New Orleans, Louisiana
Robert D. Flach, Mainstreet Newsletter
Adam Piore, Money Watch
Katy Area Chamber of Commerce Luncheon
The Katy Area Chamber of Commerce monthly luncheon will be held on Wednesday, April 7th Carmelo’s Ristorante at 14795 Memorial Drive. Networking begins at 11:00 and the luncheon at 11:30.
The luncheon is sponsored by Meadowbrook Farms and the speaker will be John Beddow, Publisher, from Houston Business Journal.
The cost is $30 for members, $40 for non members, $35 for a corporate member table for 10, and $275 for a corporate member table for 8.
To register and prepay, visit here.
The Joy of Connecting-An Exciting Networking Opportunity for Women
The Joy of Connecting® monthly event will be held on Saturday, March 27th from 10:30am – 1:00pm. This is a relaxed brunch/networking gathering designed just for women. Whether a business owner, entrepreneur, or professional business woman, you can benefit from attending this event. Our goal is to help you expand resources, foster and strengthen relationships and build your business. No membership requirement. Limited to 35 participants.Cost is $25. Make your payment in advance to reserve your spot. Make checks payable to Stephanie Stansbury. Mail along with your business and contact information to 565 S. Mason Rd., Ste 421, Katy, TX 77450. For more information visit http://www.thejoyofconnecting.com(click on “locations” then click on “TX”), email slstansbury@yahoo.com or call 1-800-398-7953.
Epiphany of the Lord Church Job Fair
Epiphany Church at 1530 Norwalk Drive in Katy is hosting a Job Fair on Thursday, January 28 from 10:00 am to 2:00 pm. The event is free and there will be companies represented for jobs from receptionist to vice president. There will be employers from the area of finance, IT, engineering, healthcare, retail, and sales/management. See website for more information.
A list of the companies that are participating, and the openings they have, will be given to job candidates on the morning of the fair. To ensure the most current information from the participating employers, this list will not be distributed prior to the day of the event.
This event is geared toward degreed, career-minded, professional job candidates. Candidates with no/some college but substantial related work experience would also be well suited for this event.
Score Counselors at Katy Chamber Office on Mondays
SCORE Counselors are available at the Katy Area Chamber of Commerce office every Monday from noon – 4:00 pm.
This is a free service available to new and existing small businesses. To schedule an appointment, go to www.katychamber.com. The Katy Area Chamber of Commerce is located at 23501 Cinco Ranch Blvd., No. 8206.
Katy Gift Wrapping Service by Katy Entrepreneur
Vivian Mora is wrapping hundreds of presents this holiday season. However, family and friends will not be on the receiving end of most of this handiwork. Vivian runs vlm creative, a creative services company, offering custom gift wrapping service that is scheduling appointments and taking holiday orders through December 19. After that, maybe friends and family will be the focus of this Katy-area businesswoman’s skills.
Vivian has 20 years of professional and personal gift wrapping experience. While attending college, she was introduced to professional gift wrapping “by fire” as she puts it during one very busy holiday season working for a major retailer. With a life-long creative streak, Vivian states that this turned out to be a match made in heaven. Read more
Grace Care Center of Katy #1 Ranked Skilled Nursing Facility in Katy Area
Texas Department of Aging and Disability Services rated Grace Care Center of Katy a 94 which is well above the Texas statewide average of 60. This rating makes Grace Care Center number one in the Katy area and number three in all of Harris County. Grace Care Center of Katy recently celebrated their one year anniversary and is very proud of this designation.
Grace Care Center of Katy is a premiere rehabilitation, skilled nursing and memory care facility located just south of 1-10 (west) off the Grand Parkway. Everyone is encouraged to tour and see for themselves how Grace Care Center of Katy (281-394-1300) is changing care for seniors. For more information go to our website www.GraceCareKaty.com .
Win Free Dog Training by Cesar Milan Trained Specialist!
The Katy Chamber of Commerce will celebrate the opening of new cage-free boarding facilities at The Dogfather Ranch on Saturday, November 7, 12-2 p.m. A renowned dog training facility and pet-sitting company, The Dogfather Ranch opened in 2006. On Saturday, the first 50 dogs in attendance will have a chance to win FREE obedience training!
The Dogfather Ranch is located on the southside of Morton Road west of Old Katy. The address is 28085 Morton Ranch Road. The phone number is 832-474-9060.
The Dogfather Ranch is owned by consummate pet experts, Matt and Valerie Bryant. Their motto is “We Treat Your Pets Like Family”; this is more than a slogan, it’s a way of life for the Bryant family who own four dogs of their own. They also have a beloved kitty. Read more
Kosmos Coffee: A Café with a Cause
Kosmos™, a new non-profit coffee shop located in the Fellowship at Cinco Ranch, is opening its doors to the Katy community with good intentions at heart. The café’s tagline, “Coffee – Community – Cause” exudes its commitment to “…changing the world one cup at a time.” All profit made on your purchase at Kosmos™ will benefit humanitarian organizations both locally and globally. Read more
Katy Ducks Unlimited Reloads
Over the past four months the Katy Chapter of Ducks Unlimited has rebuilt its ranks and is gaining momentum toward a re-launch of the chapter with an auction- and raffle-loaded banquet October 8 to raise funds for wetlands and waterfowl conservation.
“The Katy Chapter is back and there’s plenty of opportunity for anyone in the Katy/Brookshire area to network, become involved in activities and have fun supporting healthy wetlands and waterfowl populations,” said Daren Beaudo, DU Katy area chairman. Read more
Live at the Katy Home Decor & Remodeling Show
We are broadcasting live from the Katy Home Décor & Remodeling Show! Check it out! Click the play button in the lower left corner. (tune in on Sunday again for a live stream)
Workforce Solutions Returns to Katy, Texas
The Katy Area Economic Development Council (“Katy Area EDC”) and the Katy Area Chamber of Commerce (“Katy Chamber”) today announced that through the efforts of an unprecedented partnership between government, community and business leaders in the Katy area, Workforce Solutions will be opening a new office in Katy Mills in mid‐ September 2009.
This 1,800 square foot branch office of Workforce Solutions will replace the Workforce office formerly located at the Houston Community College Northwest campus on US Interstate 10 and Park Row at Foxlake Drive that was closed over a year ago. According to Sue Cruver, marketing coordinator for Workforce Solutions, funds from the US Department of Labor were allocated to other states based on the formula that drives dollars to states with higher unemployment. Read more
This is a Great Time to Start Your Job Search!
By Mary-Helen Giles.
If you are one of many local Katy residents looking for a new job or just thinking of making a change, things are finally starting to look up! Recent statistics show that the rate of unemployment is starting to trend downward and layoffs are slowing down. In addition, the use of temporary help across the Gulf Coast region is increasing. In past recoveries, this is often the first indicator that the economic situation is improving. In fact, recent conversations with hiring managers in the Greater Houston area have given us even greater reason for hope: budgets being prepared now for 2010 actually allow for addition of permanent staff in several key areas.
So how can you take advantage of this situation? Now is the time to dust off that old resume, take your interview suit to the cleaners and start networking. The first step in this process is to contact anyone you plan to use as a reference in your job search. Let them know that you are looking for a new position and ask them if they will provide a reference for you. Confirm that you have all of their current contact information, including address, phone number and email address. Many employers will run detailed background checks on new hires, so make sure that all of the information on your resume is correct (especially dates) and that your education information can be verified. In other words, if you still owe an old library fine to your alma mater, now is the time to pay it so they will confirm your degree! Depending on the type of job you are seeking, it may also be a good time to double check your credit report to make sure all of the information is correct. Read more
Katy Home Décor and Remodeling Show
The Katy Home Décor and Remodeling Show is coming to the Leonard E. Merrell Center the weekend of September 12th – 13th, and you won’t want to miss it! From local celebrities to tips and vendors featuring subjects that affect every homeowner, there will be something for everyone at the show.
Filling the entire Merrell Center with goodness to the seams, this show will be no ordinary attraction. Visitors can expect booths, vendors, speakers, and more all about furnishings, decorating and interior design, accessories, remodeling, kitchens and baths, appliances, home theaters, home improvements, pools and spas, and landscaping. Read more
Katy ISD “Open for Business” Expo Scheduled
By Katy ISD Communications.
Katy ISD’s Purchasing Department will host “Open for Business,” an opportunity expo for Katy area vendors, September 8, 2009, 6:30-8:30 p.m., at the Leonard Merrell Center.
An outgrowth of Superintendent Alton Frailey’s Local Vendor Initiative, the event is intended to provide helpful information to local vendors who are interested in doing business with Katy ISD. Participants will learn how to do business with the district, be familiarized with future business opportunities, meet with key members of the district’s procurement team, receive information on various service and commodity needs, and have an opportunity to share concerns during an open forum.
In addition to purchasing personnel, representatives of various departments, including Athletics, Nutrition and Food Service, Transportation, Maintenance, Police, Technology, Fine Arts, Teaching and Learning, Facilities/Planning and Business/Finance, will be on hand to share information and answer questions about the products and services typically purchased in their areas. Read more
Beau Kisses Grand Opening Today
It was a match made in, well… Katy, Texas when Austin boutique owner Lisa Brown discovered LaCenterra at Cinco Ranch while scouting space for her new gift and seasonal boutique. Construction on the 2,364 square feet space is nearing completion and Beau Kisses will soon begin its romance with the city of Katy. Doors open Friday, August 14 with a formal grand opening planned for the fall. Read more
Sales Tax Holiday in Katy
Next weekend marks a highly-anticipated holiday for shoppers across the State of Texas. The Tax-Free weekend, or Sales Tax Holiday will take place on August 21, 22, and 23 and will give shoppers a break from sales and use tax on most clothing and footwear priced under $100, including backpacks.
Newly featured in this year’s tax holiday are additional items added by the 81st Texas Legislature passed in HB 1801 which include an array of school supplies – exactly what parents like to hear right before 2009-2010 school year begins. Read more
